Elegant Marbles and Grani Industries Ltd Management Discussions

(For the Financial Year Ended March 31, 2026)

The Management at Elegant Marbles and Grani Industries Limited is pleased to present the Management Discussion and Analysis Report for the financial year ended March 31, 2026. This report provides an overview of the Companys business environment, industry structure, economic developments, opportunities, challenges, and future outlook. It forms an integral part of our corporate governance disclosures.

A. Economic Overview:

- Global Economy

During the financial year 2025-26, the global economy continued to operate in a challenging and evolving environment marked by ongoing geopolitical tensions, regional conflicts, inflationary pressures and volatility in international financial markets. Global trade and investment activities were impacted by supply chain disruptions, fluctuating energy prices and cautious monetary policies adopted by major economies to contain inflationary trends.

Despite these challenges, the global economy demonstrated resilience supported by gradual moderation in inflation, stabilization in commodity prices and improving business confidence across several developed and emerging economies. Central banks across various regions continued to adopt balanced policy measures aimed at sustaining economic growth while maintaining financial stability.

While geopolitical uncertainties and market volatility continued to influence investor sentiment during the year, the medium to long-term outlook for the global economy remains cautiously optimistic, supported by improving economic activity, technological advancements and expected recovery in global trade and infrastructure investments.

- Indian Economy and Outlook

The Indian economy continued to demonstrate strong resilience and stability during the financial year 2025-26 despite uncertain global economic conditions. Supported by robust domestic demand, sustained government focus on infrastructure development, policy reforms and improving investment climate, India maintained its position as one of the fastest growing major economies in the world.

Growth across sectors such as infrastructure, real estate, manufacturing, services and urban development contributed positively to economic momentum during the year under review.

Although external factors such as geopolitical tensions, fluctuations in commodity prices and global market volatility posed certain challenges, the Indian economy remained well positioned due to strong macroeconomic fundamentals, stable financial systems and continued policy support from the Government.

The long-term outlook for the Indian economy remains positive and encouraging, driven by growing domestic consumption, infrastructure expansion, digital transformation and favorable demographic advantages, which are expected to create sustained growth opportunities across sectors.

B. Industry Structure and Development:

The marble and natural stone industry witnessed dynamic market conditions during the financial year 2025-26. Demand for premium imported marble and decorative stones remained steady, particularly from luxury residential projects, commercial establishments, hospitality infrastructure and high-end interior applications. Increasing urbanization, evolving customer preferences towards premium interiors and continued growth in the real estate and infrastructure sectors continued to support demand for imported marble products in India.

The industry, however, also witnessed challenges arising from fluctuations in freight costs, foreign exchange volatility and disruptions in global supply chains due to ongoing geopolitical developments across certain regions. Despite such challenges, the long-term outlook for the marble and granite industry continues to remain positive.

The Company continued to maintain its reputation as one of the reputed importers and suppliers of premium marble and natural stones through its emphasis on quality products, customer satisfaction and long-standing business relationships.

- Business Overview:

Elegant Marbles and Grani Industries Limited continues to solidify its reputation as a trusted manufacturer and processor of high-quality natural stones. With more than four decades of experience, the Company has built a legacy rooted in innovation, quality, and customer satisfaction. Our manufacturing facility at Abu Road, Rajasthan, remains one of the most technologically advanced in the sector.

The Company offers a wide range of imported marble and granite products catering to luxury residential projects, commercial establishments, hospitality infrastructure and premium interior applications. The Company continues to focus on providing high-quality products with a diverse range of textures, colors and finishes in line with evolving market trends and customer preferences.

During the financial year under review, the Company continued to witness demand from premium housing, commercial and infrastructure segments despite challenging global economic conditions. The Company also focused on strengthening operational efficiencies, inventory management and customer engagement to enhance business performance.

The Company continues to leverage its established relationships with customers, architects, interior designers and developers while exploring opportunities for expanding its market reach. The Company is also focusing on digital initiatives and online marketing platforms to strengthen brand visibility and customer accessibility.

Despite challenges arising from fluctuations in foreign exchange rates, freight costs, global supply chain disruptions and geopolitical uncertainties, the Company remains confident of sustaining its market position through prudent business practices, quality offerings and continuous focus on customer satisfaction.

The management continues to adopt a cautious yet growth-oriented approach and remains optimistic about the long-term prospects of the marble and natural stone industry supported by growth in real estate, infrastructure and premium interior segments in India.

Financial and Operational Performance

The Company maintained a stable financial position in FY 2025-26, with performance metrics largely in line with the previous year. While external factors affected short-term growth, internal efficiencies and strategic positioning have ensured operational resilience. Detailed financial data is provided in the accompanying financial statements section of the Annual Report.

Opportunities and Threats

The future outlook for the marble and granite industry remains promising. Government-led infrastructure development, increased disposable incomes, and shifting consumer preferences toward premium housing continue to present significant opportunities. Additionally, the Companys expanding international presence opens doors in emerging global markets.

However, challenges persist in the form of increasing competition, price pressure from artificial stone alternatives, and rising input costs. The Company is actively enhancing its product mix, supply chain resilience, and customer engagement strategies to address these threats.

Risk Management

The Company is exposed to various business risks including fluctuations in foreign exchange rates, volatility in freight and logistics costs, changes in import regulations and duties, increasing competition and slowdown in real estate and infrastructure sectors.

Further, during the financial year under review, the global economy witnessed significant volatility on account of ongoing geopolitical tensions, war situations in certain regions and uncertainty in international financial markets. Such developments adversely impacted investor sentiment globally and resulted in fluctuations in capital markets, commodity prices and currency movements.

The Companys investment portfolio was also impacted by prevailing market volatility arising from such geopolitical developments and uncertain global economic conditions. Accordingly, the Company recognized diminution in the value of certain investments during the year under review based on prudent assessment and applicable accounting principles. The management continues to monitor market developments closely and follows a conservative and prudent approach towards investment decisions and risk management.

Internal Control Systems and Adequacy

The Company has adequate internal control systems commensurate with the size and nature of its business operations. The internal control framework ensures safeguarding of assets, proper recording of financial transactions, compliance with applicable laws and regulations and reliability of financial reporting.

The Company regularly reviews its internal control systems and procedures to ensure operational efficiency and effective risk management. Internal audit functions are carried out periodically and the observations are reviewed by the Audit Committee for necessary corrective actions.

Human Resources

The Company firmly believes that human resources are one of its most valuable assets. The Company continued to maintain cordial and harmonious industrial relations during the year.

The Company remains committed towards providing a positive work environment, encouraging employee development and fostering a culture of professionalism, teamwork and continuous improvement.

Cautionary Statement

Statements in the Management Discussion and Analysis Report describing the Companys objectives, expectations, estimates or projections may be forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied depending upon economic conditions, government policies, market conditions, geopolitical developments, war situations, foreign exchange fluctuations and other incidental factors beyond the control ofthe Company.